Assume you have the job of setting up an organization struct

Assume you have the job of setting up an organization structure for a new company which will be a retail store operation to sell health-food products. The owner is an independently wealthy woman who is starting this business because she thinks people ought to eat better. You have been asked to design the organization. When the business opens there will be a dozen retail stores and a wholesale operation to sell the products to existing food stores. She also plans to eventually have two organic farms to grow healthy food. Based on your reading of the class material for this week, what do you think are the important principles to consider in designing this organization? What would you suggest to the owner regarding the organizational structure?

Solution

Designing organizational structure

When starting a new organization, there are basic principles that one should follow for the success of his/her business, it will derive Success of the business and will let up eliminate the issues occurring in between the growth of the business. These principles are:-

Purpose of the product – before setting up new strategies for the organization, one should first make customers learn what is the product, how it is beneficial for the consumers, what is the different thing that you are providing to your customers as compared to your competitors, etc. in our case, since the company is based on health food, we should first describe the products and its benefit while consuming it as compared to other product. As our product is health food, we can also give information about health benefits of eating your product.

Building framework – by building a framework for an organization, will help you in quickly looking at the problems faced while setting a business and by proper framework, one can easily solve the problems.

Organization chart – organization chart will help you recognize who is the person who can work as a manager of particular departments and will give a clear picture of hierarchy of the organization.

Top Management – hire skilled individual as a top management of the coming, they will provide effective strategies for the growth of the business. The balanced should be there of technical as well as managerial skills in the management.

Control Management – make a strategy to control the possible hurdles in the growth of the business, like in our case, one thing to control is to look out for the competitors and try to reduce the cost of the product and make sure that there is something different from the competitors which will give your product an edge in market.

Accountability – make people accountable for their role in the organization.

Organizational structure

There are few key points that an organization must have in its structure to have an optimal gain. These are

Specific department for all business areas, like marketing department for planning market strategies, R&D for product research, etc.

Specialization – every department must have experts in their teams to resolve problems and look for opportunities to grow the business.

Cost control